Smart Agriculture Industry Overview
The global smart agriculture market size is anticipated to reach USD 35.98 billion by 2030, expanding at a CAGR of 10.8% during the forecast period, according to a new report by Grand View Research, Inc. Factors such as consistent growth in population, low availability of cultivable land, government incentives, and demand for fresh and high-quality food are expected to drive the smart greenhouse market. According to the World Health Organization (WHO) and Population Council, 80% of the global population resides in urban cities. The prevailing scarcity of land in urban cities has urged growers to adopt new solutions for developing fresh produces. For instance, the vertical farming technique enables consumers to grow crops indoors in layers, in a multi-story building, stacked on racks, or in a warehouse.
The growing population is expected to result in increased food demand by 2050. Farmers are likely to witness immense pressure in increasing crop production, either by making more land available to grow crops or by adopting newer techniques, such as smart agriculture and vertical farming. Traditional farming techniques witness several barriers, such as climate change and high labor costs. These disadvantages can be overcome with the use of technologies such as LED indoor farming, which creates a nature-like condition to help farmers meet the swelling food demand. Additionally, the changing preference of consumers toward healthier and fresh foods is expected to drive market growth during the forecast period.
Smart Agriculture Market Segmentation
Grand View Research has segmented the Smart Agriculture market based on offering, application, and regions
Based on the Type Insights, the market is segmented into Precision farming, Livestock monitoring, smart greenhouse, and others.
- The livestock monitoring segment accounted for a market share of 21.97% of the global smart farming market. Furthermore, the smart farming market has been segmented into precision farming, smart greenhouse, and others. The others segment includes fish farming and horticulture. Precision livestock monitoring supports the real-time monitoring of the health, production, and welfare of livestock to ensure optimal yields.
- Smart farming is an integrated approach to managing farming activities, such as preserving resources and optimizing yields, by implementing IoT and information communication technologies. Smart farming entails real-time data on the conditions of soil, air, and crops. It aims to ensure the profitability and sustainability of the farm yield while protecting the environment.
- The market estimates and forecasts of the smart greenhouse segment include vertical farming. The smart greenhouse enables farmers to cultivate crops with minimal human intervention. Climatic conditions such as soil moisture, temperature, and humidity are continuously monitored, and any variation observed in them triggers an automated action.
Based on the Offering Insights, the market is segmented into Hardware, Software, and Services.
- The software segment is likely to portray the highest growth rate from 2022 to 2030. It was valued at USD 3,012.4 million in 2021 and is expected to expand at a CAGR of 13.5% during the forecast period. The hardware segment has further been bifurcated into automation & control systems, HVAC systems, LED grow lights, RFID tags & readers, and sensing devices.
- The growing automation of raw material production and product manufacturing in the dairy and food industry is likely to drive the milking robots segment in the future. Automation technology has improved milk quality and animal welfare. The rising need to reduce labor costs and improve productivity is expected to positively impact the profitability of the dairy & food processing industries.
- The drones sub-segment under the automation & control system is expected to witness the highest growth rate during the forecast period. Several types of drones include hybrid and fixed-wing. Fixed-wing drones comprise a rigid wing having a predetermined airfoil, which aids in its flight by generating lift caused by the drone’s forward airspeed.
Based on the Application Insights, the market is segmented into Precision farming application, Livestock monitoring application, and Smart greenhouse application.
- The yield monitoring segment held a market share of 44.09%. This is attributable to the growing demand for monitoring crop growth and reducing overall wastage by providing timely required water and minerals. The application of agriculture type includes irrigation management, yield monitoring, crop scouting, field mapping, weather tracking & forecasting, inventory management, and farm labor management.
- The application of smart greenhouse includes water & fertilizer management, HVAC management, yield monitoring, and others. The HVAC management segment is expected to expand significantly during the forecast period as increasingly greenhouse farms are employing it. The need for maintaining different temperatures and humidity for hydroponic grow rooms and aquaculture areas drives demand for the HVAC management segment.
- Applications of livestock monitoring include milk harvesting, breeding management, feeding management, animal comfort management, and others. According to the Food and Agriculture Organization (FAO), technological advancements in livestock and agricultural production system will play a significant role in addressing food shortages.
Smart Agriculture Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Industry players are engaging in numerous inorganic growth strategies, such as frequent mergers and acquisitions, in their endeavor to expand their product portfolio. For instance, in November 2020, Ag Leader Technology upgraded its InCommand displays and added built-in-house SteerCommand Z2 and SteadySteer to its SteerCommand product portfolio. These products provide end-users with a single user interface that steers and controls all farming equipment. Moreover, in January 2020, CropMetrics was acquired by CropX, a leading soil and agricultural analytics company, to expand into the U.S. market. This acquisition was intended to leverage CropMetrics’s vast dealer network, service model, user-friendly platform, and Variable Rate Irrigation System to serve product offerings in major regions of the U.S.
Key market players are aggressively establishing partnerships and collaborations to strengthen their market presence and customer base. For instance, in April 2021, AGCO Corporation, in a strategic partnership with EZ-Drops, an innovative agricultural equipment manufacturer, to provide AGCO’s dealers in North America with access to a new nutrient supply system. The nutrient application system is available at AGCO’s RoGator dealers with customized configurations. This system will help farmers to reduce excess spraying of nitrogen, resulting in decreased farm profitability.
Key players in the global smart agriculture market include:
- Ag Leader Technology
- AGCO Corporation
- AgJunction, Inc.
- AgEagle Aerial Systems Inc.
- Autonomous Solutions, Inc.
- Argus Control Systems Ltd
- BouMatic Robotic B.V.
- CropMetrics
- CLAAS KGaA mbH
- CLAAS KGaA mbH
- CropZilla
- Deere & Company
- DICKEY-john
- DroneDeploy
- DeLaval Inc
- Farmers Edge Inc
- Grownetics, Inc.
- Granular, Inc.
- Gamaya
- GEA Group Aktiengesellschaft
- Raven Industries
- SST Development Group, Inc
- Trimble Inc.
- The Climate Corporation
- Topcon
Order a free sample PDF of the Smart Agriculture Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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